The Dogelon Mars price has stabilised close to its lowest level since April 20th as investors continued focusing on Twitter’s acquisition. ELON also reacted to the upcoming interest rate decision by the Federal Reserve. It is trading at $0.0000009, about 27% below the highest level in April. It has a market cap of more than $498 million.
The biggest catalyst for meme coins in the past few weeks has been the planned acquisition of Twitter by Elon Musk. Some investors believe that the purchase will be a positive thing for Dogecoin since Musk has promised that he will start accepting the coin. Therefore, they expect other meme coins like ELON, Floki Inu, and Shiba Inu will benefit from the purchase.
Still, there are concerns about whether the deal will close as the spread between the current Twitter stock price and the buyout price remains wide. For example, musk promised to buy the company at $54 while the shares traded at $49. To put this into perspective, Twitter is currently valued at over $37 billion, while its acquisition valuation is $44 billion.
ELON price is also reacting to the upcoming interest rate decision by the Federal Reserve. Analysts expect that the Fed will deliver its first 0.50% rate hike in years and start reducing its balance sheet. A hawkish Fed is usually a bearish thing for risky assets like Dogelon Mars. However, there is a likelihood that these risks have already been priced in.
The four-hour chart shows that the ELON price has been in a strong bearish trend in the past few days. As a result, the coin remains substantially below the 50-period moving average, signalling that bears are in control. In addition, the Relative Strength Index (RSI) has moved slightly below the neutral level of 50, while the Stochastic Oscillator has moved above the oversold level.
The coin has also formed a descending channel pattern that is shown in purple. Therefore, with signs of bottoming emerging, there is a likelihood that the coin will continue rising as bulls target the resistance at $0.0000010. On the flip side, a drop below this week’s low will invalidate the bullish view.
This post was last modified on %s = human-readable time difference 08:23